TNI Bureau: The Odisha Government has hiked the VAT on Petrol and Diesel by 6% and 2% respectively with effect from May 17, 2020. VAT on Petrol has been increased from 26% to 32% while the same on Diesel has gone up from 26% to 28%.
Petrol prices will now become costlier by Rs 3.11 per litre while Diesel will be dearer by Rs 1.03 per litre in Bhubaneswar.
The retail sale price of petrol at Bhubaneswar will be Rs.71.69 per litre and diesel Rs.67.73 per litre.
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The last revision of VAT rate on petrol & diesel was made in Odisha on January 5, 2016, raising from 23% to 26%. The collection of additional revenue would be utilized for delivery of services in health, education and other social sectors, says the Govt.
As per the Odisha Government sources, hike in VAT was necessitated after the Centre increased cess and special excise duty of Rs.10 per litre on petrol and Rs.13 per litre of diesel w.e.f May 6, 2020. Govt.of India is collecting total tax of Rs.32.98 per litre of petrol and Rs.31.83 per litre of diesel, whereas Govt. of Odisha will collect VAT of Rs.16.60 per litre of petrol and Rs.14.34 per litre of diesel after present revision from May 17, 2020.
Assam, Nagaland, Maharastra, Karnataka, Rajasthan, Haryana, Tamil Nadu and Delhi have already increased VAT/Sales Tax on petrol and diesel during March/April/May 2020.
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